Mining company Billiton plans sell-off

THE world's biggest mining company BHP Billiton is to slim down by spinning off its none-core businesses such as its aluminium, bauxite and nickel production, writes John Reynolds.

PUBLISHED: 00:33, Sat, Aug 16, 2014

BHP did not specify businesses it would sell [GETTY]

BHP wants to focus on its four core businesses which generate most of its profits.

The Anglo-Australian group said: "A portfolio focused on our major iron ore, copper, coal and petroleum assets would generate stronger growth in cash flow and a superior return on investment."

BHP added that a demerger was its preferred option but did not specify which businesses it would sell. Details of the break-up, which would see BHP investors given shares in the new entity, could come as early as next week when it reports annual results.

A portfolio focused on our major iron ore, copper, coal and petroleum assets would generate stronger growth in cash flow and a superior return on investment

BHP

Over the past few years, BHP has sold off a number of businesses, including Dominion Diamonds in 2012, which has brought in £3.8billion.

But it has yet to find a buyer for its Nickel West business in Australia, which it put up for sale in April this year.

Analysts welcomed the move and shares in the FTSE 100 group rise 24½p to 2050p.